Corporate Social Responsibility and Compensational Incentives
We construct a measure of CEO concern for non-equity stakeholders based on corporate social responsibility (CSR) scores, and we investigate how such incentives affect firm leverage and cash holding. In general, we find that non-equity stakeholder incentives decrease leverage and increase cash holding, after controlling for CEO managerial incentives and other firm characteristics. Our findings suggest that corporate social responsibility benefit non-equity stakeholders, which may come at the expense of shareholders.
DegreeMaster of Science (M.Sc.)
DepartmentEdwards School of Business
SupervisorMaung, Min; Wilson, Craig
CommitteeYang, Fan; Zhang, Ying; Mamun, Abdullah
Copyright DateAugust 2015
Corporate social responsibility